Plastic granules classification under primary form heading defeats waste-and-scrap import restriction and related confiscation.

Regenerated plastic granules imported as HDPE/LDPE regrind were classified under CTH 3901 as plastics in primary form, so they were not treated as waste and scrap for the purpose of the DGFT import restriction. On that basis, the goods were not a restricted item liable to confiscation, redemption fine, or penalty under the public notice governing waste-and-scrap imports. The appellate authority's view that the departmental classification did not warrant any change was upheld, and the Revenue's challenge failed.

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Issues: Whether HDPE/LDPE regrind plastic imported by the respondent was a restricted item under the relevant DGFT public notice and liable to confiscation, redemption fine, or penalty.

Analysis: The imported goods were found to be regenerated granules made from single thermoplastic material and classified under CTH 3901, which covers plastics in primary form. On the record, the goods could not be treated as waste and scrap so as to attract the restriction in the DGFT public notice governing such items. The departmental classification also did not involve any change to the heading of the imported goods as classified by the lower authority.

Conclusion: The imported material was not a restricted waste-and-scrap item, and the order of the first appellate authority required no interference.

Final Conclusion: The Revenue's challenge failed, and the appellate order in favour of the respondent was sustained.

Ratio Decidendi: Regenerated plastic granules classified in CTH 3901 as plastic in primary form are not to be treated as waste and scrap for the purpose of import restriction under the applicable public notice.

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